[Federal Register Volume 65, Number 183 (Wednesday, September 20, 2000)]
[Rules and Regulations]
[Pages 56773-56774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24087]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 183 / Wednesday, September 20, 2000 / 
Rules and Regulations  

[[Page 56773]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Common Crop Insurance Regulations; Rice Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Interim rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the Rice 
Crop Insurance Provisions to provide coverage for losses resulting from 
failure of irrigation water supplies due to drought and intrusion of 
saline water as mandated by section 508(a)(8) of the Federal Crop 
Insurance Act (Act).

EFFECTIVE DATE: This rule is effective September 19, 2000. Written 
comments and opinions on this rule will be accepted until the close of 
business November 20, 2000, and will be considered when the rule is to 
be made final.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Federal Crop Insurance 
Corporation, United States Department of Agriculture, 6501 Beacon 
Drive, Stop 0812, Room 421, Kansas City, MO 64133-4676. Comments titled 
``Rice Legislation'' may be sent via the Internet to 
[email protected]. A copy of each response will be available 
for public inspection and copying from 7:00 a.m. to 4:30 p.m., CDT, 
Monday through Friday, except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: For further information contact Linda 
Williams, Insurance Management Specialist, Research and Development, 
Product Development Division, Federal Crop Insurance Corporation, at 
the Kansas City, MO, address listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be exempt for the purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

    Under the provisions of the Paperwork Reduction Act of 1995 (44 
U.S.C. chapter 35), the collections of information for this rule have 
been previously approved by OMB under control number 0563-0053 through 
April 30, 2001. The amendments set forth in this rule do not revise the 
content or alter the frequency of reporting for any of the forms or 
information collections cleared under the above-referenced docket.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of UMRA) for State, local, and tribal 
governments or the private sector. Therefore, this rule is not subject 
to the requirements of sections 202 and 205 of UMRA.

Executive Order 13132

    The provisions contained in this rule will not have a substantial 
direct effect on States, the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Therefore, 
consultation with the States is not required.

Regulatory Flexibility Act

    This regulation will not have a significant economic impact on a 
substantial number of small entities. The regulation does not require 
any more action on the part of the small entities than is required on 
the part of large entities. The amount of work required by the 
insurance companies will not increase significantly as a result of this 
rule. Therefore, this action is determined to be exempt from the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 605), and no 
Regulatory Flexibility Analysis was prepared.

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372 which require intergovernmental consultation with State and local 
officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988 on civil justice reform. The provisions of this rule will not 
have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. The administrative appeal provisions published 
at 7 CFR part 11 must be exhausted before any action for judicial 
review of any determination made by FCIC may be brought.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    This interim rule implements the changes to the rice crop insurance 
policy mandated by section 508(a)(8) of the Act. Section 508(a)(8) of 
the Act requires the provisions to be implemented for the 2001 and 
subsequent crop years. Since the changes to the policy made by this 
rule are required by statute, and the changes must be made by the 
November 30, 2000, contract change date to be fully implemented for the 
2001 crop year, it is contrary to the public interest to publish this 
rule for notice and comment prior to making the rule effective. 
However, comments are solicited for 60 days after the date of 
publication in the Federal Register and will be considered by FCIC 
before this rule is made final.

[[Page 56774]]

    FCIC amends the Common Crop Insurance Regulations (7 CFR part 457) 
by amending 7 CFR 457.141, Rice Crop Insurance Provisions effective for 
the 2001 and succeeding crop years. The principal changes for insuring 
rice are:
    1. Section 9(a)--Clarify that failure of the irrigation water 
supply is an insured cause of loss, if during the insurance period an 
insured cause of loss, drought or intrusion of saline water causes the 
failure. This will expand coverage for failure of the irrigation water 
supply.
    2. Section 9(b)--Clarify that any loss of production due to the 
application of saline water is not an insured cause of loss, except 
when intrusion of saline water occurs due to an insured peril.

List of Subjects in 7 CFR Part 457

    Crop insurance, Rice.

Interim Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation amends 7 CFR part 457 as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

    1. The authority citation for 7 CFR part 457 continues to read as 
follows:

    Authority: 7 U.S.C. 1506(l), 1506(p).

    2. Amend 457.141 as follows:
    a. Revise the introductory text;
    b. Revise section 9(a)(8) of the crop provisions; and
    c. Revise section 9(b) of the crop provisions.


Sec. 457.141  Rice crop insurance provisions.

    The Rice Crop Insurance Provisions for the 2001 and succeeding crop 
years are as follows:
* * * * *
    9. Causes of Loss.
    (a) * * *
    (8) Failure of the irrigation water supply if caused by an 
insured cause of loss specified in sections 9(a)(1) through (7), 
drought, or the intrusion of saline water.
    (b) In addition to the causes of loss not insured against in 
section 12 of the Basic Provisions, we will not insure against any 
loss of production due to the application of saline water, except as 
specified in section 9(a)(8) of these crop provisions.
* * * * *

    Signed in Washington, D.C., on September 14, 2000.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 00-24087 Filed 9-19-00; 8:45 am]
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